Australians spent $33.9 billion in stores and online during the month of April, a 9.6 per cent increase on a year ago and up 0.9 per cent on the previous month, according to the Australian Bureau of Statistics.
The Easter long weekend bumped up the sales for April, says Australian Retailers Association (ARA) CEO, Paul Zahra.
“April was another phenomenal result for retailers overall, with trade boosted by the Easter long weekend when many people got away for holidays—the first real break people had since the beginning of the pandemic, which coincided with a relaxing of domestic border controls and Covid restrictions on businesses,” he says.
“However, we know that the record retail sales result can also be attributed to the higher prices we’re seeing across the economy, particularly in the food industries. While sales are increasing, so too are business costs, while staff shortages remain an ongoing concern.”
Indeed, National Retail Association (NRA) CEO, Dominique Lamb, urges the Reserve Bank to await the May and June figures before increasing interest rates again.
“This is certainly welcome news, although it’s no great surprise as we knew there were inflationary pressures in the economy, which is what prompted this month’s rate increase,” Lamb says.
“The danger for retailers will be if we see further increases before there has been time to properly assess the impact of the first rate rise, so we caution against using these figures as a reason to try to curb spending, when we don’t yet know the impact of the May increase.”
However, according to research by ARA and Roy Morgan, bargain hunters are set to spend $8.8 billion in stores and online as businesses look to clear out their excess stock in their mid-year sales.
More than six million Australians plan on shopping in the mid-year sales and will spend an average amount of $1,420 each, 52 per cent of this will be online.
“The mid-year sales are a great opportunity for consumers to pick up a bargain as retailers look to clear out their excess stock. Expect to see prices slashed on a range of items from fashion, shoes and accessories to electronics, bedding and homewares as retailers make room for their new season lines to start the next financial year,” says Zahra.
“With tax time around the corner, savvy consumers will also be on the lookout for work related products which they can then claim from 1 July, so we expect products like computers, phones and tablets to be popular purchases.
“It’s also a great opportunity for consumers to make a day of it and head into the city for their mid-year sales shopping. Foot traffic remains well below pre-pandemic levels in our capital cities due to flexible working while tourist numbers will take years to bounce back. Coming into the city and having the full shopping and dining experience will go a long way to boosting the recovery efforts of those businesses.”
